Europe’s largest Uranium Miners ETF hits a quarter of a billion AUM

10 January 2024

  • URNM launched in 2022 in partnership with uranium experts Sprott Asset Management, and has experienced rapid growth – it is the largest uranium ETF in Europe based on AUM. [1]
  • URNM provides exposure to the growth of nuclear power via uranium miners, and also invests in physical uranium through investment trusts.  

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January 2023, London

HANetf, Europe’s first and only independent white-label UCITS ETF and ETC platform[2], and leading provider of digital asset ETPs, is delighted to announce that Sprott Uranium Miners UCITS ETF (URNM) has reached $255.1 million assets under management (AUM), having surpassed $200 million AUM less than three months ago.[3] URNM is the largest uranium ETF in Europe. [4]

Uranium miners are expected to have an essential role in the energy transition. The urgent need to achieve net-zero targets has forced global leaders to explore alternative sources of clean energy, and nuclear is viewed as efficient, safe and clean – especially given it has fewer CO2 emissions per GWh than wind, solar, and hydro energy. [5]

At last year’s COP28 summit in Dubai, more than 20 countries pledged to triple the world’s nuclear capacity by 2050. Endorsing countries include the US, Canada, France, Japan, South Korea, the UAE, and the UK. The declaration calls on international financial institutions, such as the World Bank, to include nuclear energy in their lending policies.

Meanwhile, in September of last year, Japan restarted its 12th nuclear power plant since the end of 2015, having shut down all its plants following the Fukushima incident of 2011.

We are witnessing something of a “nuclear renaissance”, with power plants being constructed rapidly around the globe. But, there is a significant uranium supply deficit – in order to support this nuclear renaissance, uranium miners will need to ramp up production to meet demand. [6]

URNM, which tracks the North Shore Sprott Uranium Miners Index, was launched in May of 2022 and provides exposure to the growth of nuclear power through uranium miners. Alongside uranium mining equities, URNM also invests in uranium via physical trusts – the ETF currently has around 18% direct uranium exposure. [7]

The ETF was launched in partnership with uranium experts Sprott Asset Management, which oversee a US-listed sister uranium miners ETF with over $1.6 billion AUM[8] and a physical uranium trust with over $5.7 billion AUM.[9] Additionally, the ETF also has exposure to physical uranium.

Recently, HANetf launched Sprott Copper Miners ESG Screened UCITS ETF (CPPR), providing ESG screened exposure to copper miners. Copper is critical for the energy transition from fossil fuels to cleaner energy sources and technologies, and for the purpose of CPPR’s index includes copper producers, developers and explorers.

HANetf also launched Sprott Energy Transition Materials UCITS ETF (SETM) in March of last year, which provides exposure to the companies that are providing the critical materials needed for the global clean energy transition, such as rare earths, silver, copper, lithium, nickel, manganese, cobalt, and graphite.

 

 Hector McNeil, Co-Founder and Co-CEO of HANetf comments:""URNM has seen tremendous growth, becoming the largest uranium ETF in Europe. We are delighted to see it reach $255.1 million AUM so quickly. The call at COP28 to triple the world’s nuclear capacity is in our view demonstrative of a growing realisation that nuclear is an essential and necessary part of the net-zero transition.

“Sprott Uranium Miners UCITS ETF (URNM) offers exposure to the growth of nuclear power through uranium miners, which have been historically underrepresented in the energy sector, posing upside potential.”

 Tom Bailey, Head of ETF Research at HANetf comments:"Nuclear energy was first used to generate electricity in 1951, supposedly heralding the Atomic Age. Yet 70 years later, just 10% of the world's electricity comes from this powerful source. Now, with governments committed to moving away from fossil fuels, that number could soon start to rise, owing to the ability of nuclear to produce reliable, low-carbon baseload energy. Indeed, at the recently concluded COP28, nuclear energy took centre stage with 22 countries pledging to triple their nuclear energy capacity by 2050. But there is a problem: the world does not produce enough uranium to keep up with current demand, let alone future projections. The uranium spot price is responding, rising from $48 per pound to $91 in 2023. While this price rise has led to the starting up of some new mining operations, huge shortfalls in demand are still forecast, which will only be exacerbated if the aforementioned 22 countries at COP28 make good on their pledge. Investors are starting to sense the opportunity, as shown by URNM's dramatic AUM increase." 

  

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